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Question

Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.
LEGAL PRINCIPLE: A master shall be liable for the fraudulent acts of his servant committed in the course of employment. Whether the act is committed in the course of employment has to be interpreted in the context of each case. Both the maser and third parties must exercise reasonable care in this regard.
FACTUAL SITUATION: Rani was an illiterate widow and she opened Saving Bank Account with ICICI Bank with help of villager who was an Accountant in the Bank. He used to deposit the cash of Rani every month and entries were made in the Pass Book and in computer system. After two to three years the villager who was accountant in said ICICI Bank was removed from job of accountant. Being not aware of such removal Rani used to give cash every month to villager to deposit into the Bank in her Saving Account. But the villager used such cash as its own. Rani found one day that such villager died of road accident and Rani thereby claimed all of her cash with interest from Bank.
FEASIBLE DECISIONS:
(A) ICICI Bank is liable to compensate to Rani.
(B) ICICI Bank is not liable to compensate Rani.
(C) Rani cannot blame others of her own wrong.
FEASIBLE REASONS:
(1) Rani was not aware that accountant was removed from the bank.
(2) ICICI Bank was not aware of the transaction between Rani and her villager.
(3) It is the duty of ICICI Bank to take care of such type of customers.
(4) Rani should have checked about villager in her own interest.
Your Decision with Appropriate Reasons:

A
B(2)
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B
B(1)
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C
A(3)
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D
C(4)
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Solution

The correct option is B B(1)
B is the correct option.
Rani must be aware of her interest as she was giving amount to the villager. She must be knowing about the villager that is he removed from the bank or not. The bank is not liable to compensate. That villager is liable to compensate for the amount that he took from Rani. Even though he is dead, Rani cannot claim her cash from the bank.

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